With Republicans controlling both
the General Assembly and the governor’s
mansion for the first time in more than
140 years, 2013 is sure to be a year unlike
any other in state politics.
Along with that major shift in power,
there are also plenty of fresh faces in state
government. New Gov. Pat McCrory was
sworn in on Jan. 5, and the 2013 session
of the General Assembly opened on Jan.
9. A large class of freshmen lawmakers,
coupled with an even larger class from
2010, means that two-thirds of the
General Assembly have two or less years’
worth of experience in the legislature.
With a new governor comes new
cabinet-level appointments, meaning
new bosses for many state workers.
The departments of public safety,
commerce, cultural resources, revenue,
administration, environment and natural
resources and transportation all have
new leadership, with McCrory promising
a “customer-service approach” to state
government.
SEANC’s legislative team started
laying the groundwork to promote the
association’s interests before the session
began, and will be there to make sure
state workers’ rights and benefits are
protected throughout.
SEANC works with leaders from
both parties on issues important to state
employees. Almost half of the N.C.
Senate members and nearly a third of
all N.C. House members in the 2013

Stay Informed
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concerning state workers,
as well as the weekly
Legislative Update.

General Assembly were endorsed by
EMPAC, the association’s political arm.
“It’s going to be a busy year, that’s for
sure,” said SEANC Executive Director
Dana Cope. “Fortunately we have built
strong relationships with leaders on both
sides of the aisle. We will fight every day
to make sure the vital public services
our members provide taxpayers remain
a priority.”
McCrory and General Assembly
leaders have made it clear they intend to

Photo by JOnathan Owens

by Jonathan

SEANC Asst. Director of Communications

reform North Carolina’s tax structure,
even hinting at scrapping the income tax
all together for a consumption-based tax
system that would raise sales tax rates.
Unemployment benefits, retirement
funding and the budget will also be
hot topics of debate in this session.
For a complete list of SEANC’s 2013
Legislative Priorities, visit http://bit.ly/
WtToEO.

jowens@seanc.org

Executive Director’s Message
By Dana Cope

SEANC Executive Director

Tax Reform Among Top Issues to Watch

T

hings are sure to be different in Raleigh this year
with the transition of power. SEANC has had a
positive working relationship with Republicans
in the legislature in recent years, as well as with newly
elected Gov. Pat McCrory. We hope to continue to work
with them on matters important to our members.
Gov. McCrory and his colleagues in the legislature have
made it clear they intend to tackle
extensive tax reform in this General
Assembly session. They argue that
high personal and corporate tax
rates have hindered North Carolina’s
ability to attract companies and jobs.
They are expected to press for
major reforms, or even the scrapping
of the state income tax all together
in favor of a consumption-based
Cope
tax system that relies on a higher
sales tax for revenues.
This is a complicated issue for state employees that we
at SEANC are still studying, and we will have to wait until
the legislature makes public the details of their plan before
we can take a side.
There are pros and cons for our members. On one hand,
a consumption-based tax system would likely be a more
stable source of revenue for the state than the current mix
of sales and income taxes. With less volatility in the system,
state employees would have to worry less about changes in
funding, and the possible job cuts that may come as a result.
But a consumption-based tax system is also thought
to be regressive, meaning that it could disproportionately
affect the middle and working classes. Why? Because it is
not always the case that the more you make, the more you
consume.
While we are all in favor of making North Carolina more
competitive, tax reform shouldn’t come at the expense of
our hardworking state employees and middle class families.
There are ways to make a consumption-based tax structure
less damaging to the middle class. For example, legislators
could include an earned income tax credit for those making
less than 250 percent of the poverty level.
The bottom line is that everyone will need to be included

2

The Reporter • February 2013

in the final outcome, not just the special interests lobbying
for exemptions and loopholes.
We expect to have enough of a clear picture of the tax
reform proposal by the next Board of Governors’ meeting
in February.
Unemployment insurance liability is also going to be a
hot topic during this session. We will continue to watch this
debate as well to ensure that those who need help still have
access to it.
Securing retirement will also be a major issue. We will
fight to continue the current defined benefit plan and
make sure the state is kicking in its fair share. We also want
control of the retirement system’s investments out of the
hands of a single fiduciary — the state treasurer — and
into a setup similar to the State Health Plan, with a board
making decisions on how to invest your money.
We will continue to fight efforts to privatize of state
services. It has been proven time and again that public
workers who have a stake in this state can provide much
better services than corporations who only care about the
bottom line.
Rest assured that SEANC’s team of lobbyists will
work tirelessly to make sure state workers are part of the
discussion on these and any other issues important to your
job and your life that may arise in this session.
dcope@seanc.org

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Protecting
Your Paycheck
If you get sick or hurt and can’t work, which
of these bills could you continue to pay?
Medical Bills
House Payment
l Car Payment
l Groceries
l Utilities
l

l

Disability Insurance

helps protect your income,
so you can still pay your bills.

Contact your Benefits Counselor

to learn more about disability insurance and how it
and other Colonial Life voluntary benefits can help
protect what really counts.

SEANC accepts advertising material from companies and persons
seeking to communicate with SEANC members. Acceptance of this
advertising does not indicate SEANC approval or endorsement of any
representation that the message, product or service is as represented
by the advertiser. SEANC accepts no responsibility and shall not be
liable for any use of or reliance on any such information, product or
service. SEANC is a private entity and is under no obligation to carry
advertisements of any nature, political or otherwise, that may be viewed
as contrary to the interests of the association and its membership.

SEANC District 65 sponsored a 4-year old boy and a 1-year-old girl through
the Salvation Army as part of its annual Christmas project. The district
contributed $150 per child to purchase items from their wish lists. In
addition, $53 was collected at the district’s Holiday Social in a 50/50 raffle for
the charity. The gifts were delivered on Dec. 14. Pictured with the gifts are
SEANC members (from left) Cynthia Hart, Lynn Tuthill, Lina Johnson, Angie
Tyson, Jacqueline Caudill, Martha Peele, Angela Sherwood, Tonya Braxton,
Debbie Austin, District 65 Chairwoman and Eastern Region Representative
Gloria Highsmith and Kim VanWagenen.

4

Peggy Cotton, District 19’s Fundraising
and Community Service Chairwoman,
left, is pictured with one of Gravelly Hill
Middle School’s administrators. District
19, in collaboration with the school and
The Neighborhood House of Orange
County, donated three boxes of items
to assist families in need this holiday
season.

District 63 presented food to
three needy families in the area
to make sure they had a happy
holiday season. Pictured from
left to right: J.E. Benton, Dottie
Benton, Anke Cahoon, Sherry
Equils, District 63 Chairwoman
Marion Drake, Jimmy Horton,
Betsy Skinner and J.E. Skinner.

The Reporter • February 2013

Member Action

Members of District 5 participated in the
annual J. Iverson Riddle Development
Center Christmas Parade in Morganton
and won the Community Friends Award.
Pictured from left to right in the front row
is Georgia Stapf, Sherry McCracken, Dale
Brittain and Sunny Vanderbloemen, in the
middle row is Johnny Burnette, District 5
Chairman Tony Smith and Nick Fox, and
on the back row is Sam McCracken.

Photo submitted by henry belada

Photo submitted by Henry belada

Photo submitted by Lynn tuthill

District 7 Chairman Henry Belada
poses with District 5 Chairman
Tony Smith and District 5 member
Georgia Stapf at the annual JIRDC
event in Morganton.

SEANC District 65 gathered volunteers, including SEANC members, family and friends as well as ECU students, to help make
20 miniature Christmas trees. These trees were donated to the Spring Arbor Nursing Home. This is a yearly community
service for the board and different locations are chosen each year. The trees are placed in each residentâ&#x20AC;&#x2122;s room to brighten
up their holiday. Pictured from left to right are Cody and Lydia Hodges, Seth Tuthill, Gloria Batts, Alicia Simpson, District
65 Chairwoman and Eastern Region Representative Gloria Highsmith, Devonte Speller, Kahshanna Dupree, Lina Johnson,
Debbie Austin, Evelyn Hinnant, Lynn Tuthill. Not pictured are members Linda Nelson, Karen Simmons, Kim VanWagenen, Doris
Wrighten and Conya Owen.

Every year, Service Employees International Union awards
more than 50 scholarships to those who wish to continue their
education. As an affiliate of SEIU, SEANC members and
dependents can apply for a scholarship through SEIU’s five
scholarship programs.
The deadline for applying for an SEIU scholarship is March
1. In order to qualify for one of SEIU’s lottery scholarships,
which are awarded without regard to sex, race, religion, national
origin, sexual origin, age or disability, you must be a member
for three continuous years as of Sept. 1.
To be eligible for the renewable scholarship, applicants must
graduate from a high school or GED program by August 2013
and must be enrolled as a full-time student for the fall semester
of 2013 at an accredited two-year or four-year college, trade or
technical school. To be eligible for the non-renewable scholarship
applicants must be returning full time to an accredited college
or university as a sophomore, junior or senior as of the fall
semester 2013, or attending an accredited community college,
trade or technical school as of the fall semester 2013.

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Last year, Brian Harrison, son of District 25 member
Gina Harrison, and Cameron Chesson, son of District 68
member Deborah Chesson, were awarded scholarships for
their hard work and desire to pursue their educational goals.
Harrison, who is attending School of The Art Institute of
Chicago, received one of 15 $1,000 renewable scholarships.
Chesson received one of 33 $1,500 one-time non-renewable
scholarships to use toward his tuition at North Carolina A&T
State University.
In addition, all applicants must pass a quiz on the SEIU
2012 Four Year Report. Graduate students are not eligible to
apply for these scholarships.
SEIU also offers four competitive scholarships worth up to
$5,000 per year.
Applications are also available online for SEANC’s
scholarships. The deadline for applying is April 15. SEANC’s
scholarships will be featured in the March Reporter.
More information on SEIU’s awards can be found at
http://bit.ly/SmcWQd. For information SEANC’s awards, go
to http://www.seanc.org/membership/scholarship/

“This is not a gift from taxpayers
to employees, these employees
have earned their retirement.
If the crime has nothing to do with
the employment of the person, it
seems like it would certainly be
far reaching for the state to try to
take action in that regard.”
SEANC Legislature Affairs Director
Ardis Watkins in a WECT-TV story,
“Convicted felons can keep state pensions”

“This settlement will cost the
retirement system far more
than it will the university. As
governor, Mike Easley neglected
the retirement system and
even diverted money from it for
other purposes, showing no respect
for the system or those state
employees working to fund it.”

““This lawsuit raises an important
legal issue regarding under what
circumstances a state retiree’s is
deemed to have returned to work
for the state and, thus, lost their
eligibility for retirement benefits.”

The President and Congress reached a deal in early January
to avoid the “fiscal cliff,” and the major tenet of the deal was
a tax increase on those making $400,000 per year and more.
But as you’ve probably already found out by looking at your
paycheck, everyone’s wallet got a little lighter with the deal.
That’s because the federal government allowed its payroll tax
holiday to expire. The holiday had cut payroll tax rates by 2
percent across the board and was meant as a stimluant for the
sluggish economy in 2011 and 2012.
Because the holiday was not renewed, a worker making
$50,000 will have $1,000 per year less in take-home pay — more
than $80 per month. That’s a lot of money for any of us! Luckily
your membership in SEANC can help cushion that hit to your
bank account through several money-savings partnerships.
For instance, SEANC’s insurance programs are often more
cost-effective than other plans offered to state workers. For
starters, your SEANC dues pay for a $1,000 Accidental Death
& Dismemberment policy right off the bat. You can get
policies for life, vision, dental, auto, home and more that give

8

The Reporter • February 2013

you peace of mind for your family’s safety at an affordable rate.
Give our insurance programs a try today by visiting seanc.org/
insurance.
Also, SEANC’s partnership with PerksConnect gives
members more than 3,000 discounts at big name stores,
hotels and restaurants nationwide, as well as local discounts at
your corner jewelry store, diner, florist and more. Check out
SEANC’s PerksConnect website at http://bit.ly/UyvhVI or
download the mobile app for iPhone or Android devices.
SEANC’s partnership with Purchasing Power gives members
a flexible payment option for large purchases. Members can buy
a laptop for their kids in college or a new refrigerator without
blowing their savings at once. Instead, a small amount is deducted
from each paycheck. Check it out at http://bit.ly/XhyP0X.
And, perhaps most importantly, a SEANC membership gives
you representation in state politics. The payroll tax increase was
a result of a federal, not state, bill. Any matter that comes before
the state legislature or from the governor’s mansion is vigorously
scrutinized by SEANC’s legislative team, who fights every day
for your rights and benefits as a state worker.